Face to Face - PFS - An overview of the Inheritance Tax Market & providing solutions on how families in the UK could avoid paying Inheritance Tax

Thanks to Ollie Wilde for this PFS face to face training session.

Session Overview:

It may come as a shock to discover that a large proportion of your wealth might be subject to Inheritance Tax (IHT) when you die. This includes all of your assets such as the family home, investments, life assurance plans not in Trust and even old family heirlooms.

Your estate will be subject to IHT if, when you die, if it exceeds the individual nil-rate band which currently stands at £325,000. Calculating how much your family will have to pay is often, although not always, simple. Count up the value of all the assets, subtract the nil-rate band and the RNRB if applicable and what is left will be taxed at up to 40% - paid for by your family. If your spouse dies before you without fully using their nil-rate band, the unused amount can be carried forward to use when you die. The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

With the family home often making up a large percentage of an estate, the government has introduced an additional nil-rate band on top of the £325,000, known as the ‘residence nil-rate band’ as mentioned above.

The residence nil-rate band for 2022/23 is £175,000. This amount does taper if the estate is over £2 million.

This means that if you give away the home you lived in before you died to your children (including adopted, foster or stepchildren) or grandchildren, they won’t have to pay IHT on the first £500,000 (£325,000 nil rate band + £175,000 residence nil-rate band) of its value if they sold it.

If you are a married couple or in a civil partnership then you can combine both your nil-rate bands, meaning that the first £1,000,000 of your assets, including your property are free from IHT.

As with most things in life, it’s rarely as simple as the example we’ve given. There’s a lot of complicated rules and calculations to follow when you’re working out how much IHT your family will have to pay, but we’re here to help.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Careful IHT planning is all about passing as much of your estate as possible to who you want to receive it, rather than to HMRC. It’s also about maintaining flexibility and control over any arrangements that are made.

Venue: Exminster Room, Exeter Court Hotel, Kennford, Exeter, EX6 7UX

Timing: Registration with tea/coffee & bacon rolls at 8:30am, session starts at 9am

Face to face CPD session ends: 10.00pm

Learning objectives:

At the end of the session attendees will be able to understand more about:

• • Understand Business Relief (BR), Protection and Inheritance Tax Solutions

  • Consider the application of BR in tax planning for clients

  • Considering the FCA guidance for selecting providers

  • Ways to identify BR opportunities within your client bank

  • Why Foresight

Presenter: Ollie Wilde, Business Development, Manager, Foresight

Foresight Senior BDM- working and living in the South West, supporting and training advisers from Bath to Cornwall with the Foresight Tax Efficient range of products-Business Relief, VCT and EIS 3 x OEICs.

Foresight only sell our products via financial advisers.